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ICBC Chairman Yi Huiman Addresses Concerns of Shareholders

On June 26, 2018, ICBC successfully convened the Annual General Meeting for the Year of 2017. The attendees deliberated on and adopted a series of proposals on the 2017 Work Report of the Board of Directors, the 2017 Work Report of the Board of Supervisors, the 2017 Audited Accounts, the 2017 Profit Distribution Plan, the Fixed Asset Investment Budget for 2018, the 2018-2020 Capital Planning, the Engagement of the External Auditor for 2017, the election of non-executive directors and amendments to some articles in the Plan on Authorization of the Shareholders’ General Meeting to the Board of Directors etc. Chairman Yi Huiman attended the meeting and answered questions raised by the shareholders on site.

Yi Huiman said in the meeting that enhancing financial risk management and serving the real economy are highly integrated. China’s economy started from the real economy, and will rely on the real economy for the future. Serving the real economy is not only the fundamental mission of the financial sector, but also the essential measure to prevent financial risks. In serving the real economy, ICBC focuses on the following three aspects: First, improving the integrated management of existing loans and incremental loans. Currently, the volume of credit loans of ICBC is over RMB14 trillion, making it the largest lender in the world. The annual volume of newly increased loans and re-granting of existing loans surpassed RMB1 trillion and RMB2 trillion respectively, injecting RMB3 trillion credit into the real economy. Second, improving the credit structure. ICBC strenuously pushes forward the development of new business modes such as inclusive finance, advanced equipment manufacturing, happiness industry, health industry and modern service industry. As to financial services to small and micro enterprises, the future of ICBC lies in such enterprises and ICBC is now substantially upgrading online and offline financial services for them, stressed by Chairman Yi Huiman. Third, satisfying the demands of customers through multiple channels. Last year, ICBC provided the real economy with funds featuring multiple channels and lower-cost, with the volume of non-credit financing increasing to RMB1.1 trillion. In terms of risk prevention and control, first, ICBC needs to control risks in new loans. Second, ICBC needs to manage and control the risks of existing customers, enhance the operating and managing capabilities for non-performing assets, further strengthen off-balance-sheet risk control, and reinforce credit obligations and the building of a professional credit team. Looking into the assets quality in the future, the Bank’s financial capability of this year will be further reinforced, the input in NPL write-offs will be increased and NPL ratio will be stable and decrease somewhat, said Chairman Yi Huiman. In addition, ICBC will further eliminate potential risks, thus making assets safer.

In the adaptation and smooth transition to the new rules on asset management, which is a common concern among the investors, according to Chairman Yi Huiman, while following the direction of “payment based on net value + product standardization”, ICBC will build an asset management service model featuring all platforms, all products and all procedures, and speed up the transformation of asset management business by adopting multiple measures, which can be specified as the following: transforming products towards making payment based on net value; upgrading sales quality and effectiveness centering on customers; deepening the building of core competitiveness in main-category asset allocation based on research on investment; preventing and controlling substantial risks by strengthening risk control; fully ensuring a smooth transformation of asset management relying on system and operation. Besides, ICBC will spare no effort in building a platform for overseas asset management, constantly satisfying the demands of asset management for cross-border funds, and demands of cross-border wealth management for domestic and overseas customers.

As to the advancement of comprehensive operations in the next step, Chairman Yi Huiman said that emphasis will be laid on the following three aspects: Firstly, seeing clearly and conducting effective management. “Seeing clearly” mainly refers to better standardize leverage and capital chains, and see through the substance of business. “Effective management” refers to that all on/off-BS financing need a unified crediting and limit management. Second, no reckless advancement and no fickleness. By adhering to stable practices, ICBC will provide enterprises and customers with all-value chain services and pursue synergistic effect in the Group. Third, advancing ahead without stop. While closely centering on the overall customer demands, ICBC will press ahead to become a comprehensive financial service provider for corporate customers and diverse the service line, product line and business line.

Concerning the advancement of internationalized operation against the backdrop of enhanced financial regulation worldwide, according to Chairman Yi Huiman, in compliance with the best practice of global banks, ICBC will further consolidate its foundation in institutions, personnel, systems and procedures, thus better adapting to the current trend of stricter overseas regulation. The Bank will further strengthen the building of a professional team, accurately understand the regulatory principles, follow up regulatory updates, and proactively and effectively carry out all kinds of works. The Bank will further tighten all-procedure monitoring and all-business management, reinforce risk control and prevention in key areas such as anti-money laundering, counter-terrorist financing, credit risks, and information and technology risks. ICBC will transfer from external layout enhancement to intensive internal cultivation in pursuing internationalized development, and further advance the localized, featured and professional development of overseas institutions.